Is the Value Measuring Adequate During the Crisis?

One can ask the question: how does the money supply evolve in history? Once all idea of ​​the imposition of a dogmatic view on this notion is abandoned, there remains the simple and clear purely experimental view of the concept.

How to measure its evolution? The simplest is undoubtedly to measure it in gold. How much is a monetary unit worth of gold in time? Measuring this value will give us a partial idea of ​​what is going on, Gold being stable as a value in a short time (which is less clear on a long time when its rarity may increase with population if production does not follow) .

Dogma collapses before experimental reality. It does not have to be, it is not related to what is observed. Worse, it is dogma, which, contrary to the reality of economic growth (and therefore, where one finally understands the need for growth in relation to the money supply), causes global societal crises, leading to wars (Leaping forward), or to massive and brutal devaluations when dogma no longer holds, with all the impoverishment of those excluded from the monetary system during the “stable” phases, and the brutal ruin of the rentiers during the correctional phases.

Logically the money supply increases over time, devaluing the currency regularly over time.

On the other hand, what should be noted? This devaluation is brutal, without anticipation, and each time is provoked by a major economic crisis (1st and 2nd World Wars, 1st Choc Petrolier of 1971).

The economic reality is therefore an increase in the money supply (or devaluation of the currency, which is equivalent), the political reality is a firmly dogmatic determination to have a “strong” currency that would not devalue in relation to the ” Now (the palliums).

But what does the monetary dividend offer? To ensure that monetary growth accompanies economic growth on a regular, gradual and smoothed basis over time. The additional monetary dividend reduces the interest of monetary capitalization and annuity to the advantage of asset capitalization, investment, and dynamic capital management. To depreciate a declining monetary capital in relation to the total money supply, we must invest, undertake, arbitrate, play the game of the economy).

In such a system, the debt-credit ration must be reduced to 1 (one can lend only what one has, all the deposits of a bank only creates 100% of credits ), And the monetary dividend which takes the place of monetary creation. The purchases and productive investments of the citizens direct the economy, and the more the State and the Banks, reduced to a non-null but normal role, acceptable. The “risk-free” annuitants disappear naturally (the dividend divides growth, a non-reinvested capital mechanically loses purchasing power in relation to the money supply).

It is not a dogmatic system as we have just seen, it is the mere adaptation to the experimental reality of the historical measure of a given monetary mass. It is a question of espousing the experimental reality and not of imposing an abstract view as “logical” as it may seem, but as catastrophic as it may be before the facts.

Consequently, the consequences of the monetary dividend are not a doctrinal choice of society, it is the mere acceptance of the local, individual implementation of the Global Long-term Economic Law as it is That it appears: Only the choices of supply (investments, enterprises) and demand (purchases) are the fundamental motor, money being only the measure.

Posted in ENG

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s